The Brooklyn Beat

Effective October 1November 17, 2011, the costs associated with getting a VA mortgage are going DOWN!

An overview: VA mortgages are bundled, securitized and sold in the
secondary market with the backing of the Federal Government. In order to
insure these mortgages, the government charges a type of insurance
premium, called a VA Funding Fee, which is typically added to the loan
amount (thereby financed).

Remember, too, that the VA (subject to some restrictions) will insure loans up to 100% of the purchase price for the home.

What is happening next week? On loans that
close effective November 17, that Funding Fee is being reduced. Because
it is typical that the fee is financed into the loan, the VA is
effectively lowering the monthly cost (because the loan amount is lower)
AND the amount that will be paid back when the home is sold (again,
because the loan amount is lower). It’s a win/win for the veteran.

If you have any questions about purchasing a home with a VA loan or if
you already have one and are considering a refinance of it because of
the low interest rates, reach out to your favorite mortgage professional
and explore the possibilities. There has never been a better time!

About The Author

Dean Hartman is the Regional Vice President of
Benchmark Lending and a 25 year veteran of the mortgage banking
industry. He has achieved the designation of Certified Mortgage Planning
Specialist, and also specializes in sales leadership, seminar
presenting, and team building. Check out Dean’s Facebook Page, DreamTeamTV.

It appears that (subsequent to my writing of this blog yesterday)
that the House has passed a bill which the President is expected to sign
which extends the current Funding Fees until November 17th. Despite
the fact that the VA’s own website still states that the change is
expected October 1st, that information seems to be outdated.

The good news is that the change is still, by all extimations coming. It just looks like we will be waiting another six weeks!